SB 233 amends the Utah Uniform Probate Code to create a specific process for the transfer of a beneficiary’s interest in a decedent’s estate when that interest is sold to a third-party purchaser. The bill defines who qualifies as a “purchaser of interest,” excludes certain family members and other transactions from its scope, and sets out detailed requirements for written agreements, including minimum font size, disclosure of consideration, description of the transferred interest, and mandatory redactions before public filing.
The bill also establishes filing and notice deadlines, requires the purchaser to provide the beneficiary with the agreement and, when applicable, a translation into the language used during negotiations, and allows the beneficiary to object and request a hearing. If no objection is filed, the court must generally allow the transfer. If the court finds noncompliance, grossly unreasonable terms, duress, fraud, or undue influence, it may alter the distribution or impose equitable terms. For willful, bad-faith violations, the court may award the beneficiary up to twice the amount paid for the assignment.
The bill adds a new section, Utah Code Section 75-3-918, to the Utah Uniform Probate Code and directly regulates secondary-market purchases of inheritance interests in probate estates. It imposes procedural safeguards on purchasers, expands court oversight over these transactions, and creates a penalty for willful violations. The law affects beneficiaries who sell estate interests, professional purchasers of inheritance rights, personal representatives, probate courts, and attorneys handling estate administration, while also carving out exceptions for family transfers, certain creditors, and heir-location services.
The available voting history shows strong and unanimous support throughout the legislative process, with favorable recommendations in committee and unanimous or near-unanimous passage in both chambers. No committee transcript is available, but the absence of recorded opposition and the broad margins suggest the bill was viewed as a technical probate reform with consumer-protection elements rather than a controversial policy change.
The main policy tension in the bill is between allowing beneficiaries to sell their inheritance interests and protecting them from unfair or coercive transactions. The bill addresses concerns about low-value buyouts, hidden terms, and pressure tactics by requiring disclosures, translation in some cases, and court review when challenged. It also limits the ability of purchasers to use broad indemnity, agency, or recourse provisions, which suggests lawmakers were focused on preventing abusive contract terms while still preserving a lawful market for these assignments.